GENERAL AGREEMENT ON ï^^ïïs 78

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1 RESTRICTED GENERAL AGREEMENT ON ï^^ïïs July 1976 TARIFFS AND TRADE Special Distribution Textiles Surveillance Body Original: English ARRANGEMENT REGARDING INTERNATIONAL TRADE IN TEXTILES Article A Notification Agreement between the United States and Brazil The Textiles Surveillance Body has received from the United States a notification of a bilateral agreement under Article A of the Arrangement between the United States and Brazil concerning trade in textiles. The TSB, pursuant to its procedure regarding bilateral agreements notified under Article 4, has examined the relevant documentation and is circulating the text of this agreement to participating countries for their information. 1 See COM.TEX/SB/35, Annex B.

2 COM.TEX/SB/178 Page 2 UNITED STATES NOTE (Cotton) 22 April 1976 Excellency: I have the honor to refer to the Arrangement Regarding International Trade in Textiles done at Geneva on December 20, I also refer to recent discussions between representatives of our two governments concerning exports of textiles ind textile products from Brazil to the United States of America. As a result of these discussions and in conformity with Articles 2, 4 and 6 of the Arrangement Regarding International.Tl-ade in Textiles, I wish to propuse the following Agreement Relating to Trade in textiles and Textile Products between Brazil and the United States of America, hereinafter referred to as the Agreement, to replace and supersede, effective April 1, 1976, the Cotton Textile Agreement of October 23, 1970, as amended.

3 COM. TEX/SB/178 Page 3 1. The terra of this agreement shall be from April 1, 1976 through -larch 31, During such term, the Government of the Federative Pooublic of Erazil will limit annual exports of cotton textiles and textile products i'rom Brai.il to the United States of America to aggregate and specific limits at the levels specified in the following paragraphs. 2. During the first year of the agreement, constituting the twelve mont: period from April 1, 1976 through March yi, l[?n' } the Government of the Federative Republic of Brazil shall limit annual exports of cotton textiles from Bra-il to the United States of America to an aggregate limit of 114,000,000 square yard-; equivalent. 3. Within the aggregate limits, group limits for the first agrepment year shall be: Group I, yarn (categories 1-4) 40 million square yards equivalent Group II, fabrics (categories 5-27) 49 million square yards equivalent Group III, apparel, made-ups and miscellaneous (categories 28-64) 25 million square yards equivalent.

4 COM.TEX/SB/173 Page U 4. Within the aggregate limit and applicable group limita, the following specific limits shall apply for the first agreement year: A. Group I In units In square yards equivalent Categories 1-4 8,695,652 pounds 40,000,000 D. Group II Category 9 15,500,000 Categories 18/19 12,900,000 Categories 22/23 5,700,000 Category 26 (duck) 5,200,000 Categories 26/27 (other than duck) 8,500,000 Group III Categories 50/31 8,620,690 pieces 5,000,000 Category 45 l4l,968 dozen 1,027,000 Category 44 40,76l dozen 1,500,000 Category 45 81,000 dozen 1,797,066 Category 46 90,0 30 dozen 2,201,150 Category ,000 dozen 2,046,655 Category 51 84,284 dozen 1,500,000 Category 55 50,000 dozen 1,550,000 Category ,000 dozen 920,000 Category ,043 pounds 980,000 Category 64 (terry) 630,435 rounds 2,900,000 Category 64 (rugs) 434,785 pounds 2,000,000

5 C0M.TEX/SB/17B Page 5 5. Within the aggregate limit, export limits in Groups I and II may be exceeded by not more than 15 percent and Group III may be exce<^ ad by 7 percent. Within the applicable group limite, specific limits may be exceeded by 10 percent in Group II and by 7 percent in Group III. 6. Within the group limits, exports in individual categories without specific limits shall be subject to category consultation levels. For categories not given specific ceilings* the annual consultation levels shall be 1,000,000 square yards equivalent for each non-apparel category and 700,000 square yards equivalent for each apparelicategory. In the event the Government of the Federative Republic of Brazil wishes to export to the United States of America textile products in excess of the applicable consultation levels, the Government of the Federative Republic of Brazil shall request the higher levels and the Government of the United States of America shall consider the request sympathetically and shall respond promptly. If, because of problems of market disruption as defined in Annex A of the Arrangement Regarding International Trade in Textiles in the United States of America in a category.-.iject to such request, the United States of America is unable to comply fully, the United States of America will so inform the

6 COM.TEX/SB/178 Page 6 ' Government of the Federative Republic of Brazil and ill supply data which form the basis of the position token by the United States of America. If requested by.he Government of the Federative Republic of Brazil, the Government of the United States of America will consult promptly. Until a mutually satisfactory change in the consultation level of the category in question is established, shipments shall not exceed the existing consultation level. 7. The aggregate, group and specific limits shall be increased in the second and third agreement years by seven percent annually. 8. (A) In any agreement year, exports may exceed by a maximum of 11 percent the aggregate limit and any group or specific limit by allocating to the limit for that year an unused portion of the applicable limit for the previous agreement year (carryover) or a portion of the applicable limit for the succeeding agreement year (carry forward). (I) Carryover may be utilized as available up to 11 percent of the receiving year's applicable limits; (II) Carry forward may be utilized up to 6 percent of the receiving year's applicable limits and charged against the next year's applicable limits;

7 COM.TEX/SB/178 Page 7 (III) The combination of carryover and carry forward may not exceed 11 percent of the receiving year's applicable limits in any agreement year. (B) For purposes of this agreement a shortfall occurs when exports from Brazil to the United Spates of America during an agreement year are below the aggregate limit. Carryover in specific and group limits may be U3ed only to the extent of shortfall in each limit. (C) Carryover and carry forward shall not be used to exceed any category consultation level except in accordance with the consultation procedures. (D) The limits referred, to> in subparagraph (A) and (B) of this paragraph are without any adjustments t, hereunder, except that carryover and carry forward shall be in addition to the adjustments permitted by paragraphs 5 and 7 to the applicable limits during each agreement year. 9. In implementing this agreement, the system of categories and the rates of conversion into square yards equivalent listed in the Annex A hereto shall apply. In any situation where the determination of an article to be a cotton textile would be affected by whether the chief weight or chief value criterion provided for in Article 12 of the Arrangement Regarding International Trade in Textiles applies,the chief value criterion used by the Government of the United States of America shall apply.

8 COM.TEVSB/178 Page The Government of the Federative Republic of Brazil shall use its best efforts to space exports from Brazil to the United States within each category evenly throughout the agreement year, taking into consideration normal seasonal factors. 11. The Government of the United States of America shall promptly supply the Government of the Federative Republic of Brazil with data on monthly imports of cotton textiles from Brazil; and the Government of the Federative Republic of Brazil shall promptly supply the Government of the United States of America With data on monthly exports of cotton textiles to the United States. Each government agrees to supply promptly any other pertinent and readily available statistical data requested by the other government. 12. The Government of the Federative Republic of Brazil and the Government of the United States of America agree to consult on any question arising in the implementation of this agreement. 13. Mutually satisfactory administrative arrangements or adjustments may be made to resolve minor problems arising in the implementation of this agreement including differences in points of procedure or operation. 14. If, having regards to the Arrangement Regarding International Trade in Textiles, the Government of the Federative Republic of Brazil considers that, as a result. <

9 COM.TEX/SB/178 Page 9 of limitations specified in this agreement, Brazil is Deing placed in an inequitable position vis-a-vis a third jountry, the Government of the Federative Republic of Brazil may request consultation with the Government of '.he United States of America with a view to taking appropriate remedial action such as reasonable modification of this agreement. 15. For the duration of this agreement, the Government of the United States of America shall not invoke the procedures of Article 3 of the Arrangement Regarding International Trade in Textiles to request restraint on the export of cotton textiles from Brazil to the United States. The applicability of the Arrangement Regarding International Trade in Textiles to this trade shall otherwise be unaffected by this agreement. 16. The Government of the United States may assist * the Government of the Federative Republic of Brazil in implementing the limitation'provisions of this agreement by controlling imports of cotton textiles covered by the agreement. 17. Either government may terminate this agreement effective at the end of any agreement year by written notice to the other government to be given at least 90 days prior to the end of such agreement year. Either government may at any time propose revisions in the terms of this agreement.

10 COM.TEÇ/SB/178 Page 10 If the foregoing proposal is acceptable to the Government of the Federative Republic of Brazil, this note and Your Excellency's note of confirmation on behalf of the Government of the Federative Republic of Brazil shall constitute an agreement between the Government of the Federative Republic of Brazil and the Government of the United States of America. Accept, Excellency, the renewed assurances of ray highest consideration. Embassy of the United States of America Brasilia - April 22, 1976 His Excellency Ambassador Antonio Francisco Azeredo da Silveira Minister of External Relations Brasilia, D. F. Cat 'gory Description ANNEX A! Unit Conversion Factor lit Yarn, carded, singles Yarn, carded, plied Yarn, combed, singles Yarn, combed, plied Gingham, carded Gingham, combed Velveteen Corduroy Sheeting, carded Sheeting, combed Lawn, carded Lawn, combed Voile, carded Voile, combed Poplin and broadcloth,carded Poplin and broadcloth, combed Typewriter ribbon cloth. k.6 k.6 k.6 k.6 l.o L.O i -,

11 COM.TEX/SB/178 Page * ^ Print cloth, shirting type, 80 x 80 type, carded Print cloth, shirting type, other than 80 x 80 type, carded. -' Shirting, jacquard or dobby, carded Shirting,.jacquard or dobby, combed Twill and Sateen, carded Twill and Sateen, combed Woven fabric,n.e.s., yarn dyed, carded Woven fabric, n.e.s., yarn dyed, combed Woviii fabric, other, carded Woven l'abric, other, combed Pillowcases, not ornamented, carded Pillowcases, not ornamented, combed Dish towels Other towels Handkerchiefs, whether or not in the piece Table Damask and Manufactures Sheets, carded Sheets, combed Bedspreads and quilts Braided and woven elastics Fishing nets and fish nettings Gloves and mittens Hose and half hose T-shirts, all white, knit, men's and boys' T-shirts, other, knit Shirts, knit, other than Trshirts and sweatshirts Sweaters and Cardigans Shirts, dress, not knit, men's and boys' Shirts, sport, not knit, men's and boys' Shirts, work, not knit, men's and boys' Raincoats, 3/4 length or longer, not knit Other coats, not knit Trousers, slacks and shorts (outer), not knit, men's and boys' Trousers, slacks and shorts (outer), not knit, women's, girls' and infants Blouses, not knit Dresses (including uniforms), not knit Playsuits, washsuits, sunsuits, creepers, n. e. s. rompers, etc., not knit, No. No. No. No. No. No. No. Prs. Prs ' '

12 C0M.TE2/SB/178 Page Dressing gowns, including buthrobes, beach robes, housecoats and dusters, not knit ' >6 Undershirts, knit, men's and boys' )7 Briefs and undershort.;, men's and boys' 3 Drawers, shorts, and briefs, knit, n. e. s. 59 All other underwear, not knit 60 Pajamas and other nitut-wear 61 Brassieres and other body-supporting garments,.. 62 Wearing apparel, knit, n. e. t:. 63 Wearing apparel, not knit, 11. e. s All other cotton textiles '+.75 h.6 k.6 k.6 UNITED STATES NOTE MAN-MADE FIBER Excellency: I have the honor to refer to the Arrangement Regarding International Trade in Textiles done in Geneva on December 20, I also refer to recent discussions between representatives of our two governments concerning exports of man-made fiber textiles, and textile products from Brazil to the United States of America. As a result of these discussions, I wish to propose *,!ie following Agreement Relating to Trade in Man-Made Fiber Textiles and Textile Products, hereinafter referred to as the agreement. 1. The term of this agreement shall be from April 1, 1976 through March 31,

13 COM.TEX/SB/178 Page During the period specified in paragraph (1) above, should U. S. imports from Brazil on a 12 month basis in categories 200 through 245 as set forth in.\:viex A exceed by ten percent their highest level in :iy of the three calendar years prior to this agreement,, either government may request consultations regarding this trade, with a view to reaching a.'mutually satisfactory arrangement on the basis of the appropriate provisions of the Arrangement Regarding International Trade in Textiles, giving due consideration to Article Each government agrees to respond promptly to a request for consultations and to participate in such consultations within 60 days of the request. k. If the Government of the United States of America considers that imports from Brazil in any mannade fiber category is increasing so as to cause a risk in the United States of market disruption, as defined in Annex A of the Arrangement Regarding International Trade in Textiles, the Government of the Unitec States of America may request consultations with the Government of the Federative Republic of Brazil.

14 COM.TEX/SB/178 Page U 5. When the Government of the United States of America requests such consultations, the Government of the Federative Republic of Brazil shall meet promptly with the Government of the United States of America to work out a mutually satisfactory solution. The consultations shall be concluded within ninety days from the date of the request for such consultations unless the two governments agree otherwise. 6". During the course of the consultations the Government of the Federative Republic of Brazil will limit its exports to the United States in the category or categories affected to 25 percent of their level for the previous 12 months. 7. Consultations under this paragraph will not be requested for any category when imports from Brazil in such category are at annual levels less than 1,000,000 square yards equivalent for each category other than apparel and 700,000 square yards equivalent for each apparel category. 8. Either government may ten.-j.nate this agreement effective at the end of any agreement year by written notice to the other government to be given at least 90 days prior to the end of auch agreement year. Either government may at any time propose revisions in the terms of this agreement.

15 COM.TEX/SB/178 Page 15 If the foregoing proposal is acceptable to the Government of the Federative Republic of Brazil, this note and Your Excellency's note of confirmation on behalf of the Government of the Federative Republic of Brazil shall constitute an agreement between the Government of the Federative Republic of Brazil and the Government of the United States of America. Accept, Excellency, the renewed assurances of my highest consideration. Embassy of the United States of America Brasilia - April 22, 1976 His Excellency Ambassador Antonio Francisco Azeredo da Silveira Minister of External Relations Brasilia, D. F. ANNEX A Category Description Unit Conversion Factor 200 Textured yarns 201 Yarn wholly of continuous filament, cellulosic 202 Yarn wholly of continuous filament, other 203 Yarn wholly of noncontinuous filament, cellulosic 20^ Yarn wholly of noncontinuous filament, other 205 Yarns, other 206 Woven fabrics, cellulosic, wholly of continuous man-made fiber 207 Woven fabrics, cellulosic, wholly made of noncontinuous fibers 208 Woven fabrics, other, wholly of coritinuous man-made fibers 209 Woven fabrics, other, wholly of noncontinuous fibers 210 Woven fabrics, other, of man-made fibers U 1,0

16 COM.TEVSB/178 Page Knit fabrics?l2 Pile and tufted fabrics 'j\.j Specialty fabrics 21-+ Gloves and mittens, knit, whether or not ornamented ;.'!') Hosiery 21'' Dresses, knit 217 Pajamas and other nightwear, knit 213 T-shirts, knit 219 Shirts, other (including blouses), knit 220 S/.irts, knit 221 Sweaters and cardigans, knit 222 Trousers, slacks, and shorts, knit, women's girls' and infants' 22} Underwear, knit 224 Other wearing apparel, knit, whether or not ornamented, n. e.s. 225 Body-supporting garments 226 Handkerchiefs 227 Mufflers, scarves and shawls, not knit 228 Blouses, not knit 229 Coats, not knit 230 Dresses, not knit 2jil Dressing gowns, including bathrobes and beachrobes, not knit 232 Pajamas and other nightwear, not knit 2ji5 Playsuits, sunsuits, washsuits, etc., ' not knit 234 Dress shirts, not knit 23!; Shirts, other, not knit 236 Skirts, not knit 237 Suits, not knit 238 Trousers, slacks, and shorts, not knit 239 Underwear, not knit 240 Other wearing apparel, not knit, whether or not ornamented 241 Floor coverings 242 Other furnishings 243 Manufactures, n.e.s. of man-made fiber Prs. Prs. No. Sft 'v k A '^ if

17 COM.TEVSB/178 Page 17 BRAZIL NOTE COTTON 22 April Senhor Encarregado de Negocios, / ïcnho a honra de acusar o recebimento da Nota de Vossa licnhoria aatada de 22 de abril de 1976, relativa as exportantes de têxteis de algodâo do brasil para os Estados Unidos da America. 2. Confirmp que o Governo da Repûblica Federativa do bras il concorda coin a proposta contida na Nota de Vossa Senhoria e proponho que sua Hota e a présente resposta constituai!! um acordo entre nossoo Governos. Aproveito a oportunidade para renovar a Vossa Senlioria os pro test os da minha mui distinta consideraçâo. /S/ ~A"ntunio Francisco Azeredo da Silveira Ao oenhor Richard E. Johnson, Encarregado de ijegôcios dos Estados Unidos da America.

18 COM.TEÇ/SB/178 Page 18 BRAZIL NOTE MAN-MADE FIBER 22 April 1976 Senhor Encarregado de Negocios, Tenho a honra de acusar o reccbimento da Nota de Vossa Senharia datada de 22 de abril de 1976, relativa as exportaçôes de tcxteis de fibras artificials do Brasil para os Estados Unidos da America. 2. Confirmo que o Governo da Republica Federativa do Brasil concorda com a proposta contida na Nota de Vossa Senhoria e proponho que sua Nota e a présente resposta constituam urn acordo entre nossos Governos. Aproveito a oportunidade para renovar a Vcssa Senhoria os protestos da minha mui distinta consideraçâo. /S/^Antonio Francisco^ Azeredo à*â""sxtvëîri ' / * * * * * * * * * * * * * * * * Ao Senhor Richard E. Johnson, Encarregado de Negocios dos Estados Unidos da America.

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